Refinancing Info
Some say you should only refinance if your new rate is at least 2 points lower— that may have been true years ago, but refinance costs have dropped significantly. Now is a great time to explore a new loan!
Benefits:
- Lower rate: Reduce your interest rate—sometimes dramatically—and shrink your monthly payment.
- Cash-out: Tap into built-up equity to consolidate debt, fund home improvements, or even finance a vacation.
- Shorter term: With a lower rate, consider a 15- or 20-year mortgage to build equity faster.
The Cost:
- Settlement & origination costs
- Appraisal fee
- Lender’s title insurance
- Underwriting and processing charges
Do the Math:
Paying points up front (roughly 3% of the loan amount) often nets you a lower rate over the life of the loan. Don’t forget to talk to your tax professional about deductible points and the impact of a smaller interest deduction.
Most borrowers find the monthly savings outweigh the upfront cost almost immediately. Let’s explore your options together.